Former FDIC Chair on Bitcoin: Regulate, But Don’t Ban

The former Chair of the Federal Deposit Insurance Corporation (FDIC) recently said that regulators should move to monitor and regulate digital currencies, but argued that the government should not move to ban them. She made the remarks in an appearance on CNBC’s Fast Money, during a panel discussion about a potential crypto crackdown.

Blair told the panel,

"I think some additional regulation would be good, and I actually argue for that. Especially on anti-money-laundering laws, where I think there are a lot of concerns over use of bitcoin or other digital currencies."

In response to a question about how much regulation the industry might need, Blair noted that officials are already moving forward on that front. She cited the FinCEN efforts in the area of money transmission, and new attention on market manipulation. She also suggested that the launch of CME and CBOE futures could help because it “could give the CFTC a window and some information to make sure there’s no manipulation going on.”

Blair was adamant about avoiding any ban of the new technology, noting that:

"We don’t ban assets. Where does that stop? I have some on my list.”

After listing a few examples from that list, she continued, “Traditionally in the U.S., we've let markets price values and determine what the value is. But make sure there is no manipulation, no fraud, clear disclosures so that people can make informed decisions in pricing the asset – whatever they might want to buy or sell."

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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